EPIC Crude Pipeline (blue line on map below), which runs from the prolific Permian Basin in West Texas to Corpus Christi, is up for sale, according to published reports. The line is owned by private equity group Ares Management (45%) along with Kinetik Holdings and Diamondback Energy, which each hold 27.5% after acquiring Chevron’s interest in 2024.
In recent Q2 earnings calls, Diamondback and Kinetik both expressed interest in selling their stake. You’re Gonna Go Far explores who might see the most value in acquiring this pipeline.
Jamie W. Welch, CEO and president of Kinetik, said on the Aug. 7 call that the company was open to a sale of the EPIC Crude Pipeline. “So, if someone shows up with the right number, then I think we're not so wedded emotionally or otherwise to this asset…”
Diamondback CEO Kaes Van’t Hof on the company's Aug. 5 call, described the pipeline as a non-core asset that is “on the block.” He said he expected to share an update in the next quarter or two.
According to our weekly Crude Oil Permian report, flows on the pipeline averaged 651 Mb/d for the first six months of this year, with 96% of the volume sourced from the Permian and the rest from the Eagle Ford. While EPIC has a stated nameplate capacity of 600 Mb/d, it has consistently exceeded that since early 2024. We believe the line has been using drag-reducing agents (additives injected into pipelines to allow for higher volumes of fluid; see Kind Of A Drag). And, as we noted in Corpus Christi Bay, EPIC’s design allows for quick, capital-efficient expansions through the addition of pumps. With a 30-inch diameter — the same as Gray Oak, which has a rated capacity of 980 Mb/d — EPIC could see a significant bump in throughput with relatively modest upgrades.
